It is much easier to analyze some data through the reading of graphs than the discussion that can arise around simple numerical inputs. Through the graphs it will be possible to monitor information related to volumes and other technical indicators (they are displayed at the base of the graph characterizing the time axis). To give a concrete example, the bands of Bollinger are directly represented on the price graph.
Certainly, almost all brokers dealing with Trading, Binary Options and Forex, make available, within their platform, various software and programs that analyze the different charts with which a successful trader will have to deal (there is not only excel therefore).
We try to take stock of this by specifically listing a series of tools that will give you the opportunity to get familiar with the visual realization of your investments.
It is a very complete and updated software (we have arrived at version 10.2). An application with which you can completely manage your investments in Trading and on the Stock Exchange. On the site you will find a good deal of information about each option that the program will allow you to work. Call 02 60063 018 directly to find out more about the costs and any free version.
We are talking about the application developed by Marco Maccaferri that will allow you to analyze stocks, quotes and news in real time. The software will also give you the possibility to realize the bullish patterns.
AIOTrade is a program that will help you in technical analysis. It is completely free and has many indicators such as moving averages, Bollinger bands and MACD.
iTrade is an application developed by Gilles Dumortier. It is very useful for the realization of graphs that you will need in your technical analysis phase. In addition, the program is very important for the administration of your portfolios.
Let's see the following graph as an example. The most common is the linear one, which indicates the price change in real time (it is very simple in this case to interpret the market trend that characterizes a given financial instrument).
These types of graphs add depth to the analysis performed with linear graphs. In these representations each bar corresponds to a specific time frame. As we can see from the representation below, the continuous line is replaced by some bars, formed by six main elements: the lower point of each bar refers to the minimum period taken into consideration (the upper one is obviously the maximum). The horizontal line on the left is the opening price (the right is the closing price).
This type of chart is perfectly able to give an idea of the market trend because, for example, if the opening will be lower than closing, we will have bullish price settings (the width of the bar indicates the volatility of prices).
From the analysis of these bar charts we can find statistically credible elements: to understand who is winning between sellers and buyers (in fact, even the numbers that revolve around the opening and closing prices can become good indicators of the market situation).
It is therefore clear that it is important to be able to analyze in detail the various bars in a graph of this type; we must consider them as a microcosm that can tell us a lot.
To perform the technical analysis that consists in the study of market behavior, just analyze the graphs, here we list the most common graphs that allow this analysis.
A linear graph is considered the least appropriate for a thorough analysis. It combines the various price units in a line over a certain period of time.
Each point represents only the closing price. The line that forms, connecting all the points, generates a graph, which also helps in the choice of the trend.
It is very important to be able to read the graphs of the stock exchange, you will be able to monitor the evolution of the prices of stocks or indices over time. This way, those who trade by analyzing charts can understand what transactions to make.
Shows the opening, closing, maximum and minimum price.
The maximum prices are represented by the highest point of the bar, indicating the maximum price reached on that day or in a certain time. The minimum price is the lowest point of the bar, indicating the minimum price reached on that day or over a given period of time.
The opening and closing prices are indicated by a bar on the right and left sides of the bar respectively. Each bar defines the entire period considered. If the graph is daily, each bar will indicate exactly the maximum and minimum, the opening and closing price of that day.
It has ancient origins and this graphic was used since 1600 by the ancient Japanese traders who had developed a method of technical analysis to predict the future evolution of the purchase price of rice. It is similar to the bar graph, because it also indicates the maximum and minimum opening and closing price. However, the candle graph is distinguished by visual clarity and helps to identify the various price patterns (candle patterns). Beyond the technical information, let's take a look at its visual declination:
In the candle graph the opening and closing price are enclosed in a rectangle, called body instead the maximums and minimums are represented by the two ends that are called upper shadow and lower shadow. The ends of the rectangles represent the opening and closing price. The body takes on the red or black color if we are in a downward trend, while it takes on the green or white color if we are in an upward trend.
Recently another model of graphs has been introduced, Heikin Ashi. They are similar in every respect to candles, but their color indicates the trend to follow.
This is how to read Heikin Ashi graphs: when the candles are green, they indicate an upward trend, while if they are red, they indicate a downward trend. Generally, they are to be used for long investments, such as hourly or daily, for short investments, they are not very reliable, but it is better to rely on the candle charts, which do not indicate a very precise trend, but for the short-term investments they are the best.
The consultation of the graphs is an essential part of the technical analysis. Today, you can use various online tools, but also a host of apps for iOS (on iPhone and iPad) and Android to access these types of information live and in real time. The analysis in turn is really the basis for understanding the market trend and therefore for being able to invest by lowering as much as possible the risk of losses or disastrous investments. Your client or yours, if you have decided to start your career as a financial broker.
The charts used in the world of Forex are many and very different from each other. Before we understand which are the most important, we must understand how they read. First of all it is good to know that generally on the axis of the ordinates we find the price and on that of the abscissa, that for the forgetful of the Cartesian geometry is the horizontal axis, we find time. Each point therefore indicates the price situation at a given time. The key to building a graph is to decide on Timeframe.
Timeframe is the amount of time analyzed in a given graph. Of course, it can be really very varied, depending on what you want to see, whether the micro price fluctuations or the macros. If, for example, we take the Japanese candle graph, the candle cover will give us an indication on the analyzed Time Frame: 15 minutes, one hour, two months.
Based on the Time Frame, always in the graph of Japanese candles, we can deduce a lot of information such as opening and closing prices, maximum and minimum prices.
One concept underlying the charts and their price variation is undoubtedly volatility. Volatility is the tendency of a price to go up and down. Greater volatility corresponds to a greater amplitude between the minimum and maximum price. All of this naturally within a fixed amount of time.
The market with the highest volatility is without doubt the Forex market. The value of the exchange of value varies enormously on the same day. In particular, there are some crosses that are more volatile than others, that is:
The simplest models of graphs (with volumes and in succession, live, in real time and free). Use indicators and Bollinger Bands to gain security
It is certainly the first graph to which it is worth looking if we are new to this type of instrument. It is easy to analyze and we can best interpret bullish or bearish trends. The downside is without doubt that it offers no more than this: the very simplicity of the graph is its biggest flaw, because it does not offer any more information.
A graph that presents more information than before, but still maintains the simplicity of reading is the Bar graph. In addition to upward and downward trends you can also find the value of maximum and minimum prices.
To assess the trend and not price as the central element, there are other more suitable and specific graphs. The first are the trend lines: a graph with data prices in which it will be enough to join together the maximums or minimums to obtain trend lines.
These graphs also make it possible to identify support or resistance lines created by investors to push or restrain a certain price.
There are a lot of sites that offer you charts to analyze prices, market trends and indices. You won't even have to make the effort to identify prices, control fluctuations etc. because the graphs are already ready. If you have read our mini-guide you will be able to read it correctly and therefore to make your money pay accordingly. If you find a bullish trend that is not yet sold out, it is obvious that it is a good time to buy, otherwise it is worth selling it. If you are a newcomer, you know that all this awareness is surely the result of some mistakes. It will happen, but do not be knocked down. Better to make a little more effort and make some small mistakes, perhaps because you have misinterpreted a graph, than to throw yourself blindly into the market, without having any knowledge of the fundamental elements of technical analysis
Want to start investing but are you still starting to take the first steps in online trading? One tool that can be used for you is the Exchange Traded Fund, which is what experts call ETF Trading. Let's try to understand what the advantages of this type of instrument which are is certainly as interesting as that of equities or other forum trading services.
As part of our "study path", after addressing the main basic terms, today we will address a very important topic such as the analysis of trends in Forex market. As we did for the trends at home Trading, today we will deal with issues related to Forex indicators.
To fully understand market dynamics, the fair value of financial products and services purchased and sold, it is necessary to have a thorough understanding of stock market developments and key features. Binary options play a dominant role in financial and economic terms and for the optimal management of online trading. Below we will explain in detail the features, providing some strategies to be used to dive into the investment of options.